HEAT MAP2018Emerging Issues and Trends

WSIA HEAT MAP | 2018

WSIA Top 15 Heat Map

2 1 Increasing Consolidation HIGH HIGH 0-3 YEARS

4 2 Increasing Cyber Exposure HIGH HIGH 0-3 YEARS

N/A 3E&S Marketplace Responding to New Coverage/Speed to Market

MEDIUM HIGH 0-3 YEARS

1 4 Increased Capacity MEDIUM HIGH 0-3 YEARS

3 5 Increasing Challenge in Workforce Dynamics HIGH HIGH 3-5 YEARS

6 6 Widening Technology Gaps HIGH MEDIUM 0-3 YEARS

13 7 Autonomous Vehicles MEDIUM MEDIUM 5-10 YEARS

15 8 Growth of the Peer-to-Peer Sharing Economy MEDIUM MEDIUM 0-3 YEARS

16 9 Preparation for the Seamless User Experience MEDIUM MEDIUM 3-5 YEARS

10 10 Internet of Things MEDIUM MEDIUM 3-5 YEARS

8 11 Big Data MEDIUM MEDIUM 3-5 YEARS

11 12 Global Climate Change MEDIUM MEDIUM 3-5 YEARS

5 13Erosion of the Wholesale Distribution Value Proposition

MEDIUM MEDIUM 3-5 YEARS

N/A 14 Artificial Intelligence MEDIUM MEDIUM 5-10 YEARS

7 15Entrance of Nontraditional Companies into Insurance Industry

MEDIUM MEDIUM 3-5 YEARS

CURRENT RANKING INDUSTRY TREND PROBABILITY SEVERITY TIME FRAME

Additional Trends Being Researched

Robotics Increased Political VolatilityUsage-Based Insurance Digital Currency (Bitcoin)Blockchain

2016 RANKING

Additional Areas of Member Interest

About the Heat Map Respondents

Carriers Going DirectLegalization of MarijuanaDronesWholesale Distribution Alliances

• 370 WSIA members participated in the survey, compared to 203 respondents from the last survey in 2016.

• 53.2% of respondents were U.S. Wholesale Members, including brokers, delegated underwriting authorities that sell to the retail channel and program administrators.

• 34.0% of respondents were U.S. Insurance Market Members, including risk bearers and delegated underwriting authorities that sell to the wholesale channel.

• 7.6% of respondents were Associate Members, including London brokers, managing agencies, syndicates, Canadian wholesalers, reinsurers and reinsurance intermediaries.

• 5.14% of respondents were Service Members, including non-U.S. wholesalers and risk bearers that do not meet the criteria for Associate membership, consultants, inspection firms, law firms, media, other vendors and professional associations including Stamping Offices and SLAs.

3D and 4D PrintersCarrier PartnershipsSocial Networking

Intellectual Property TheftEmerging MarketsNanotechnology

The 2018 Heat Map is the result of survey responses from WSIA member firms. Respondents represent managing general agents, managing general underwriters, program managers and administrators, aggregators, brokers, domestic and international insurance and reinsurance companies, Lloyd’s syndicates and managing agents, captive insurers, law firms, premium financing companies, third party administrators, state stamping and surplus lines associations from North America, Europe and Canada.

Respondents were asked to rank 20 macro trends and indicate how they believe these trends impact the industry from a probability and severity viewpoint, the influence of those trends, and the time frame in which they felt that trend would become mainstream. The top 15 are ranked solely by the probability and severity of those impacts.

This information provides guidance to the WSIA Emerging Issues and Innovation Committee to focus ongoing research and reporting. Based on membership feedback, the committee conducts a RIOT (Research, Implications, Opportunities and Threats) process to produce reports that help members un-derstand and mitigate the threats as well as take advantage of the opportunities presented by trends. WSIA also considers the results when planning education program curricula, member webinars and research topics for RMI students.

About the WSIA Heat Map

Co-Chair, Bryan Clark, Gorst & Compass InsuranceCo-Chair, Gary Tiepelman, Western World

Robert Aheart, RT SpecialtyKaren Alford, Nationwide E&S/Specialty - Committee LeadChristie Claud, Engle Martin & AssociatesLeslie Dughi, Greenberg TraurigNorma Essary, S/L Stamping Office of Texas Elissa Kelly, Nautilus Insurance GroupGrant D. Kimball, Angus-MillerJim Kranzberg, Bell & ClementsDavid Laquidara, Jimcor Agency Inc.William Ludwick, Munich Reinsurance AmericaMatt Lynch, RPSNona McCreedy, Aurora Underwriting Services, Inc. Deborah A. Murphy, Boston Insurance Specialists, Inc. - Committee Vice LeadMark Rector, Lloyd’s Kristen Reiber, Risk Placement Services, Inc.Gregory Ricker, Atlantic Casualty Insurance Co. Ryan Stabile, Tuscano Agency, Inc. Kevin M. Tromer, MacNeill Group, Inc. Anitta Valdez, Cochrane & Co. Scott Vineyard, Nationwide E&S Specialty

* Committee members as of December 2017. Please visit the WSIA website for a list of current committee members.

WSIA Emerging Issues & Innovation Committee*

www.wsia.org

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